Daily Quiz: 14th May 2019

1. Which of the following statements are true:

1. Nagoya Protocol on Access and Benefit Sharing (ABS) is a 2010 supplementary agreement to the 1992 Convention on Biological Diversity (CBD).

2. It is the second protocol to the CBD; the first is the 2000 Cartagena Protocol on Biosafety.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans: c

Justification:

The Nagoya Protocol on Access and Benefit Sharing (ABS) is a 2010 supplementary agreement to the 1992 Convention on Biological Diversity (CBD).

Its aim is the implementation of one of the three objectives of the CBD: the fair and equitable sharing of benefits arising out of the utilization of genetic resources, thereby contributing to the conservation and sustainable use of biodiversity.

The protocol was adopted on 29 October 2010 in Nagoya, Japan, and entered into force on 12 October 2014. It has been ratified by 114 parties, which includes 113 UN member states and the European Union. It is the second protocol to the CBD; the first is the 2000 Cartagena Protocol on Biosafety.

2. Project Saksham is related to?

(a) Indian Railways

(b) Co-operative societies

(c) Self Help Groups

(d) Contract Farming

Ans: a

Justification:

The Indian Railways has initiated ‘Project Saksham’ to train its employees and upgrade their skills and knowledge.

3. Which of the following can lead to value falling of rupee?

(a) Pulling out of Foreign Portfolio Investors

(b) Rising global crude prices

(c) Fears of de-globalization

(d) All of the above

Ans:d

Justification:

Reasons for falling rupee:

Pulling out of Foreign Portfolio Investors (FPIs) who were expecting US interest rates to go up, making US treasury bonds more attractive.

Trade war between China & US, leading to greater number of import restrictions with high tariffs also caused $ to appreciate.

Rising global crude prices due to concerns around US sanctions on Iran & crisis in Venezuela.

Fears of de-globalization have also soured the global risk sentiment & dampened the outlook for emerging market assets.

4. Which of the following statements are true:

1. A Non-Banking Financial Company (NBFC) is a company registered under Companies Act that provides financial services without meeting the legal definition of a bank.

2. They can only accept demand deposits and not time deposits.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans:a

Justification:

A Non-Banking Financial Company (NBFC) is a company registered under Companies Act that provides financial services without meeting the legal definition of a bank.

It can engage in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities, leasing, hire-purchase, insurance business, chit business etc.

NBFCs are different from banks as:They can only accept time deposits and not demand deposits

NBFCs do not form part of the payment & settlement system & cannot issue cheques to its customers

5. BHARAT 22 is?

(a) Voluntary regulatory framework on bank capital adequacy

(b) Safety norms for automobiles

(c) An Exchange traded fund

(d) None of the above

Answer: c

Justification:

The second tranche of Bharat 22 Exchange Traded Fund (ETF) was launched by the government to raise Rs. 8400 crores from the markets.

Bharat 22 is an ETF that will comprise of bluechip stocks of 16 public sector enterprises, 3 public sector banks and three private companies (L&T, ITC & Axis Bank) where Specified Undertakings of the Unit Trust of India (SUUTI) has stakes.